Sanusi carpets NNPCL, doubts dollar remittance after subsidy removal

President Bola Tinubu has been advised not to hold the position of Minister for Petroleum Resources by Sanusi Lamido Sanusi, a former governor of the Central Bank of Nigeria. According to Sanusi, this arrangement will make it difficult for the nation to hold the Nigerian National Petroleum Corporation Limited accountable.

He revealed this on Thursday in Abuja during his speech at the Bank Directors Summit, which was hosted by the Bank Directors Association of Nigeria.

From June 2009 to February 2014, Sanusi, the governor of the CBN, declared the NNPC to be the “most opaque oil company in the world.”
The outspoken economist attacked the NNPCL, saying that even after the current administration eliminated the fuel subsidy, the organization was not sending enough foreign currency into the government's coffers.

The former Emir of Kano emphasized the need for the foreign exchange market to stabilize as well, pointing out that the nation's economic downturn and rising inflation had been caused by monetary policies over the previous eight years.

He claims that it will be challenging for anyone to bring up the issue of accountability if the president also holds the position of petroleum minister.

"We need to stabilize the exchange rate and address the fundamental question of why there is no money coming in," he stated. Why can't the NNPCL generate revenue? I apologize; this was the question that cost me my job. I will keep bringing up this issue until NNPCL resolves it or I pass away. The dollars are missing. The NNPCL requires our attention. The lack of a monitoring system reporting to him prevents the finance minister from telling you. How many barrels of gasoline we produce and export is a secret even to the finance minister. Only the NNPCL is able to provide those numbers. The amount of oil must be known by the finance ministry.
"Where are the dollars since we are no longer providing subsidies? Where is the money? It was under recovery during the subsidy era, but that has since ended. I was suspended because of the issue I brought up, so feel free to suspend me once more. The NNPCL is the world's most opaque oil company. They had never been audited during my fifteen years at the central bank. From production to export to return, we must track the money to see where it is going. We paid N11 trillion in subsidies, but as of right now, there has been no answer. The NNPCL was asked to bring the documents by the National Assembly, but they refused.

"By the way, let me advise that it is not a good idea for the President to become a petroleum minister," he continued. For eight years, the previous president served as the minister of petroleum. We had a minister of petroleum when I was the governor of the central bank, so I could criticize Diezani Madueke when I spoke about the NNPCL. No one can discuss petroleum anymore, as doing so would be tantamount to criticizing the president for the previous eight years. We require that safety net; therefore, a minister who is answerable to Nigerians must be present.

Three months after taking office, in August, President Bola Tinubu divided the Ministry of Petroleum Resources by designating Ekperipe Ekpo as Minister
The substantive Minister of Petroleum Resources post was kept to himself by President Tinubu, seemingly following the tradition of his predecessor, former President Muhammadu Buhari.

Modification to the CBN Act

Sanusi added that it was because of this call that he lost his job at the top bank. He demanded a thorough audit of the Nigerian National Petroleum Company Limited in order to understand the nation's daily oil production, export, and accrued revenue.
He insisted that the public's lack of trust in the banking industry must be addressed and that the CBN Act does not need to be changed in order to keep political influence out of the apex bank.

"It's critical to discuss the ongoing dialogue about amending the Central Bank Act, particularly as it comes from the National Assembly," he said. Permit me to join the chorus of people who have declared that the Central Bank of Nigeria Act is perfect. BOFIA is not flawed in any way. Among the best laws pertaining to central banking worldwide is the CBN Act. Actually, the only laws we found when reviewing central bank legislation were those that would teach us a few things.

"Now, if those tasked with enforcing a law fail to do so, changing the law is not the answer. Removing the central bank's independence and placing it under political authority is a hasty decision. In the long run, you are institutionalizing the lack of autonomy, which would be detrimental to the system. In actuality, you have a central bank that is autonomous and independent, but both politicians and central bank actors have worked to weaken its independence. It's time to enforce the law and return to the central bank's original role.

The former governor of the Central Bank of Nigeria also discussed the application of Ways and Means and how he withstood pressure to exceed the legal limit.

"Observe the example of Ways and Means," he said. Only when all checks and balances eventually failed did that situation come to pass. One question that comes up when the National Assembly discusses Ways and Means is: where were the oversight committees? On multiple occasions, when we were governors, we were all asked to bring money. The finance minister called me one day and said they needed N100 billion. I informed them that we needed to find alternative ways to raise money for the government without going overboard because they had reached their limit.

If this indicates anything, it is that individuals who lament the excessive number of regulations should consider the times when American regulation was reduced. Rules are flexible and subject to change. We need to make sure that banks are properly run and aware of the risks they face. Naturally, following regulations is one thing; putting them into practice is quite another.

"Tinubu will comply."

While restating the goal of promoting financial access, enforcing an integrity-driven culture, and utilizing cutting-edge technology, President Bola Tinubu promised to make sure the CBN operating under his direction complies with all legal requirements.

Plans to create a financial regulatory framework to advance the nation's economy were also disclosed by him.

"I can say that all those issues, from regulations to short-term liquidity in the foreign exchange market to long-term structural change, have been dealt with in the policies of the current administration," stated Tinubu, who was accompanied by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. Although we won't finish everything in a single day, we will make sure to abide by the law and do the right thing. It's a path of travel.
"We must work together to address the dynamic challenges we face as a group, balancing the complexities of regulation and compliance in order to build the kind of resilient system that would eventually underpin the rule to rapid, sustained, and inclusive economic growth. Finance banking is inherently risky."

"All efforts are being made to bring in funds that will shore up the liquidity of the financial system of the foreign exchange system," the minister stated in reference to ongoing efforts to increase liquidity.

"The summit was focused on advocating for the banks' interests and making sure they are willing partners," stated Mustafa Chike-Obi, the chairman of the Bank Directors Association of Nigeria.

"This summit provides an excellent opportunity to promote
"Building the kind of resilient system that would underpin the eventual rule to rapid, sustained, and inclusive economic growth is imperative because finance banking is intrinsically risky and the dynamic nature of the challenges we face requires us to address them collectively, balancing the complexities of regulation and compliance."

The minister commented, "Every effort is being made to bring in funds that will shore up the liquidity of the financial system of the foreign exchange system," regarding ongoing efforts to increase liquidity.

The summit was centered on promoting the interests of banks and ensuring that they are willing partners, according to Mustafa Chike-Obi, Chairman of the Bank Directors Association of Nigeria.

"This summit provides a good forum for advocating for
Sanusi is replied by NNPC.

While reiterating that everyone was free to express their opinions, the NNPC stated that it was currently focused on completing the task that had been assigned to the national oil company.

Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, informed one of our correspondents that the allegations made by the former head of CBN would not require an official response.

He clarified that responding constantly could impede the massive task that the oil company is facing and added that NNPC would prefer to focus on managing the work that it was created to accomplish.

"Everyone has the right to express their opinions. Responding to each person on an ongoing basis may impede our work. Delivering energy security, overseeing ongoing initiatives, and putting reforms into place continue to be our main priorities, according to Soneye.